Claim: Four years ago, who would have believed that Rs 3 lakh crore would be returned by defaulting borrowers to creditors. This is the impact of the Bankruptcy and Insolvency Code. This will help the country in allocating financial resources more efficiently.
Fact: False. Only Rs 1.42 lakh crore was recovered over the last two years, The New Indian Express reported on April 15, 2019.
Link: https://twitter.com/PMOIndia/status/1099174538355634176
Explanation: While claims for recovery are likely to be over Rs 3 lakh crore with high profile cases such as Essar Steel and the other 12 cases referred by the Reserve Bank of India, creditors have recovered only Rs 1.42 lakh crore over the last two years, The New Indian Express reported on April 15, 2019.
About 1,484 companies have been admitted under the Corporate Insolvency and Resolution Process since the implementation of the Insolvency and Bankruptcy Code 2016 at the end of December 2018, according to data released by the Insolvency and Bankruptcy Board of India. Of these, the resolution plans of only 79 have been approved.
Source:
https://www.ibbi.gov.in/uploads/publication/QUARTERLY_NEWSLETTER_FOR_OCT_DEC_2019.pdf
https://premium.thehindubusinessline.com/portfolio/big-story/the-ibc-conundrum/article26834830.ece
